Delivering on “Free Travel Faster” is our promise on a daily basis

Interview with Mark Dority, program manager - EarlyReturns, Frontier Airlines

By FFP Online Correspondent, Ritesh Gupta.

Frontier Airlines’ EarlyReturns frequent flyer program continues to tread new barriers since its launch five years ago.

When it was introduced, EarlyReturns was billed as the only FFP offering a 15,000 mile redemption level in the industry. Moving on, Frontier came up with the first online miles-for-merchandise store, the MoreStore, and the “no blackout dates” policy for seat redemption. In November 2006, Frontier Airlines Holdings and AirTran Holdings joined forces to create the first low cost carrier referral and frequent flyer partnership in the industry.

Recently, the airline announced enhancements to the EarlyReturns program, allowing passengers who fly shorter distance routes to achieve elite status more quickly. In addition, for the first time in the history of the program, passengers who spend $60,000 in a calendar year on their Frontier MasterCard can earn “Ascent” Status.

Mark Dority, program manager for EarlyReturns, shared more information about the program in an interview with FFP Online.

Dority, as program manager for EarlyReturns, is responsible for customer communication strategy, loyalty marketing initiatives, member acquisition and development through all communications channels including traditional marketing, e-marketing, promotions, direct mail, and via internal channels.

On his assignment, Dority said, “Frontier Airlines and EarlyReturns are both great products that have unlimited potential. Working in an FFP that is so young leads itself to very specific challenges and opportunities. The EarlyReturns staff of less than 20 people are focused and dedicated on making our program the very best in the industry. Coming from outside the airline industry I have brought with me a consumer perspective that has helped fuel the program development and grow the program in membership and loyalty.”

Here is what Dority had to say about the program.

FFP Online: What have been the key milestones as far as Frontier’s program EarlyReturns is concerned?

Mark Dority: A key milestone and something that set us apart from other airlines was launching the Frontier More Store (www.frontiermorestore.com) in June 2005, an industry leading miles for merchandise auction site. At the end of 2006 we surpassed two million EarlyReturns members and more recently launched our Online Redemptions application. Allowing our members to redeem their EarlyReturns miles and choose flexible flight dates without having to pick up the phone.

FFP Online: How has the referral and frequent flyer partnership with AirTran Airways progressed?

Mark Dority: The partnership with AirTran Airways has really increased our nationwide presence. Additionally, our members are now able to go coast to coast on either airline while earning EarlyReturns miles. On the financial side, after six months, we are looking to at least match our revenue projections.

FFP Online: About EarlyReturns, Frontier says: “Earn miles how you want. Use miles when you want. And get all the info and great deals you want.” What do you think is critical in delivering this?

Mark Dority: Our current EarlyReturns marketing message is “Free Travel Faster” which we deliver to our customers on a daily basis. With roundtrip redemption seats between the contiguous U.S. and Canada for only 15,000 miles and only 25,000 miles to Alaska or Mexico, it’s the lowest regular redemption fare structure in the industry. Additionally, we have limited-time reduced mileage offers on our redemption seats, we call them “Redemption Deals,” which saves members a minimum of 5,000 miles per redemption seat.

FFP Online: Fingers are being pointed at FFPs pertaining to them being mere cash generators with travelers becoming less loyal and instead opting for the lowest fares or joining multiple FFPs. Do you agree with this?

Mark Dority: It’s no secret that FFPs are revenue generators to their respective airlines. However EarlyReturns has always put the members’ needs first. We listen very closely to the suggestions we receive from our membership on ways to improve the program. By listening and prioritizing the membership we have been able to provide them with a better program. In doing this we are actually increasing their loyalty to Frontier Airlines and EarlyReturns.

In a perfect world we want all of our members flying us for every route all the time. But the competitiveness of the industry doesn’t always make that possible and we understand that. What we do have is a superior product, friendly service, new aircraft and DIRECTV® service in every seat back. So in the long run we feel our product will be the overall deciding factor when it comes down to it. 

FFP Online: It is now being said by many that airlines institute a variety of redemption and other program fees in order to control costs and have dramatically increased the mileage cost of a free flight- moves that are received poorly by customers. How is your airline positioning EarlyReturns away from such concerns?

Mark Dority: We do a very good job of limiting the “hidden” fees that other programs have. For example: when booking a redemption online the only thing a member pays for is the taxes on that redemption ticket. The taxes vary whether you go international, but there are no processing fees or any other hidden costs the member has to worry about.

We’ve also increased the value of our miles by offering Redemption Deals. These deals actually save our members a minimum of 5,000 miles off our already low 15,000/25,000 redemption structure.

FFP Online: If on one hand, there is pressure to control costs, on the other there is an increasing need for airlines to create a customized and relevant experience for the traveler with points becoming a commodity. How are you handling this dilemma?

Mark Dority: We have a couple of measures in place to help—such as the Frontier More Store and Redemption Deals. The Frontier More Store is a great way for our Elite members to utilize their miles for aspirational gifts and once in a lifetime experiences. All members are able to take advantage of our limited-time Redemption Deals when they are available.

Third, the AirTran Airways partnership is another way for members to use their miles. Members are able to redeem EarlyReturns miles for flights anywhere AirTran Airways flies; offering brand new options our members haven’t had before.

FFP Online: Considering the fact that all customers aren’t equal, how do you balance costs for various segments? For example - taking away privileges when customers do not re-qualify for tiered benefits can create huge customer disloyalty if not handled appropriately?

Mark Dority: We’ve worked very hard to create a communication strategy and provide our membership with the information they need when it comes to qualifying or re-qualifying for their tier status.

For example, we let our members know when they are “half-way” to earning their tier status again and we also let them know when they are within 3,000 miles of earning their status. We would like all our members to be able to keep their tier status and increase their tier status if at all possible.

FFP Online: It is said that loyalty strategy should grow out of your brand strategy and deliver on your brand promise. In Frontier’s case, its all about four key principles: Affordable; Flexible; Accommodating; and Comfortable. How are you making sure these attributes reflect in EarlyReturns? Could you share some examples?

Mark Dority: Our Brand Promise is a very key component of how we do business from an EarlyReturns perspective and we feel our airline performance hits the mark on each promise. Delivering on all four of our brand promises is the main reason we won the 2006 Low Cost Carrier of the year award given by Business Traveler Magazine.

Our affordability is based on our redemption seats starting at 15,000 miles and extends with our redemption deals that saves members a minimum of 5,000 miles per redemption seat.

We are flexible in the sense we have a confirmed standby option for all travelers on the same day of departure (outbound, return or one-way flight) for only $25. This fee is waived for our Summit members. Third, based on third party surveys conducted we have the most accommodating customer service in the industry. Our employees genuinely enjoy helping others and are committed to delivering a better flight experience than the other guy.

Finally, we have new planes, 33 inches of legroom, a great flight attendant group and DIRECTV® service in every seat back. We make flying on our airline very comfortable whether you’re a business or leisure traveler.

FFP Online: How are you looking look beyond loyalty program return-on-investment metrics to discover the true value of that data in its ability to fundamentally transform the customer experience?

Mark Dority: The customer experience is something every person in the company has a stake in. All our organizations are involved from our reservations agents, to our ticket agents, to our ground crew, to our flight attendants and our pilots. We are all part of the customer experience and do our best every day to make the experience as enjoyable as possible to our customers.

FFP Online: Considering two factors - suppliers, especially LCCs, focusing on going direct to the customer for booking and travelers being unable to avail cross program credit after booking with online intermediaries, would it be right to say that partnership like between Frontier Airlines and AirTran Airways will enhance the customer loyalty to airlines’ direct booking channels?

Mark Dority: We’ve definitely made it a key initiative to have our customers book on our website. The AirTran Airways partnership is just another way to keep people in the family. It’s our ‘refer a friend’ product and it’s really in the best interests of both our airlines. Our complimentary route structure and the ability to earn miles in your preferred program while flying on either airline is an advantage EarlyReturns and A+ Rewards members enjoy. Fundamentally it makes sense to capture as much audience as possible in your own venue.

FFP Online: Companies are leveraging customer communities that allow for interaction between customers as well as between the customer and the brand. Loyalty marketers are leveraging the internet's ability to build virtual communities to create niche networks of customers who interact with each other through a platform facilitated by the brand. What’s your viewpoint on the same?

Mark Dority: There’s no doubt virtual communities offer excellent insight into the thoughts and minds of the consumer. We keep an eye on the online blogs such as Yahoo, Airliners.net and FlyerTalk to see what people are talking about and how we have performed in the market. Currently a virtual community sponsored by Frontier Airlines is something that we aren’t involved in but something we are looking at and hope to offer our members in the future.

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